The government and pensions industry must not be complacent about the initial success of auto-enrolment, as the challenge of engaging small and medium sized businesses has yet to be met, the National Employment Savings Trust (Nest) has warned.
Auto-enrolment began in October 2012 for companies with 120,000 employees or more. Firms with 50 employees or less will come under the reform from April 2015 onwards.
According to Nest, only 10% of employees have opted out of auto-enrolment since October, half as many as had been expected.
Speaking at the Westminster Employment Forum auto-enrolment conference, Graham Vidler (pictured), Nest director of communications and engagement, said the strong uptake among large businesses had been boosted by their resources and payroll functions. ‘Opt-out rates are very low at 10% which is very encouraging,’ he said.
However, he said the pensions industry must keep products simple to maintain that among smaller firms.